Toyota invests $5.6 billion in production of electric car batteries, hopes to reach production capacity of 3.5 million electric vehicles annually by 2030

Toyota plans to invest $5.6 billion in the expansion of production of electric car batteries in the United States and Japan, as well as in the expansion of capacity at a factory that was just recently revealed to be located in North Carolina.

The new business will bring the total capacity of the batteries that Toyota supplies to its facilities that create electric and hybrid vehicles up to 40 gigawatt hours. This will allow Toyota to meet the growing demand for its products. One example of the quantity of energy that is involved is the Kozjak hydropower plant, which has the potential to generate an annual average of 130 gigawatt hours of electricity.

The development of a battery factory in the city of Himeji, in the western region of Japan, as well as in the other facilities of Toyota in the earth, is scheduled to receive around half of the total funds that are planned for investment. The remaining $2.50 billion will be put toward expanding production capabilities at the factory in North Carolina.

On December, the North American arm of Toyota stated that it would be investing $1.3 billion in a battery plant that will be located in Liberty, North Carolina. It was stated that the facility will have the capability to create lithium-ion batteries at a rate that is adequate for 1.2 million automobiles to be manufactured each year. It is anticipated that production would start in the year 2025. The new investment plan will result in an increase of this capacity to an even greater extent.

The construction of the factory in the United States is a collaborative effort between Toyota Motor North America and Toyota Tsusho. Prime Planet Energy & Solutions, in collaboration with Panasonic, is responsible for the management of the Japanese plant.

The fresh billions of dollars that Toyota invests in batteries are in support of the company’s goal, which foresees attaining the manufacturing capacity of 3.5 million electric vehicles per year by the year 2030. This number includes the brand Lexus. In Europe, the United States, and China in the year 2030, the premium brand of Toyota will develop into an electric-only brand, and there are plans to produce one million electric vehicles per year. Following the year 2035, Lexus will no longer manufacture automobiles using internal combustion engines powered by gasoline.